Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Technology to renew a service and revenue contract agreement with 10/20 Digital LLC DBA Connected Nation Exchange (CNX) to market and to develop a rate structure and cost recovery billing model for the city's fiber optic infrastructure and to market the lease of the city's available fiber assets. Ord. No. 0298-2015, passed on March 9, 2015, authorized the original service and revenue contract with 10/20 Digital LLC DBA Connected Nation Exchange (CNX) to develop a rate structure and cost recovery billing model and to market the lease of available city fiber assets on behalf of the city. This contract allowed CNX to develop a rate structure and cost recovery billing model and to market the lease of available city fiber assets on behalf of the city. A negotiated percentage of revenues generated by CNX's marketing and sales efforts is retained by CNX with the balance being received by the city. The initial term of the original contract was for two (2) years, with three (3) annual renewal options for a total contract term of up to five years. The first renewal option was executed for the coverage term period of March 10, 2017 through March 9, 2018. This ordinance authorizes the second renewal option, for the coverage term from March 10, 2018 through March 9, 2019. The city has a continued desire to support fiber optic broadband services to businesses and educational and governmental agencies.
Additionally, this legislation authorizes the Director of the Department of Technology to modify the service and revenue contract agreement with 10/20 Digital LLC DBA Connected Nation Exchange (CNX) to include agreed upon updated language that was not included in the original contract agreement by replacing the word " fiber " with " broadband ". All other terms and conditions remain the same as the original contract agreement.
FISCAL IMPACT:
The revenues are used for the extens...
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